March 17, 2008

How many more hours until the US taxpayer (via the Fed) starts buying up hundreds of billions of toxic loan garbage from Bush's f*cked banker buddies?


I've got a baaaaaaaaaaaaaaad feeling

I think the US taxpayer is about to get stuck with billions, if not trillions, in toxic loan CDO garbage. And Congress and the media will do nothing about it.

It could come in a few different ways. Most likely is the Fed takes the garbage onto their balance sheet directly, assuming the risk and the mis-marked values.

Also watch for Congress to authorize a bailout or nationalization of Fannie and Freddie as well as the banks and investment houses deemed "too big to fail". The first rumblings will start this week. And yes, the shareholders there will be wiped out, just like Northern Rock and Bear Stearns. But so will the dollar-holding, dollar-earning taxpayers in the end.

9 comments:

eric in vegas said...

The CA, NV, FL, and AZ real estate markets will be nationalized. Book it.

tater said...

See what I mean, Keefer? Just the other day, Bush says that the failed house flippers, etc, can "Suck it"!! Then, he turns right around, and allows cousin Helicopter Benny to buy out the same toxic shit that these same house flippers caused. And, this is all in the name of "financial stability of the markets", of course.

Bush, Benny and company could care less about moral hazard. They care only about bankers, Wall Street firms and any other financial entities that line their pockets.

mairca izda debol said...

Barney Frank and Chris Dodd already have bills in the House and Senate to do that. They are the biggest Congressional donees of the hedge funds and bankers.

Anonymous said...

You know the old expression "you can't squeeze blood from an onion"? Well, how are they going to have the taxpayers bailout the financial sector with money the taxpayers don't have? Average americans are going to be so broke they are going to have to separate 2 ply toilet paper (or use their worthless dollars). so what happens is you just wipe the slate clean so to speak, and start all over. The Fed has invented some new abra cadabra kind of bankruptcy for financial institutions.

Anonymous said...

of course the tax payer will bail out wall street. did you really think anything else would happen?

Anonymous said...

Ok, I have been predicting this mass bail-out plan for months ,no maybe even years now .It's happening ,but how are the taxpayers going to pay for it . You are already paying by inflation by the Fed policies . I would think that in the future it will mean higher taxes ,and certainly lower standard of living for a great % of the population .

How can one man have so much power like the Federal Chairman ?

I can't see that this was the right way to go for the Feds . Did the course the Feds take ,save the borrowers or firms like Bear Sterns ? This is a lesson on how to destroy a economy by trying to make bad debt good and not let the losses take place ,until the taxpayers take the losses .

The Feds and powers have had a hard time trying to transfer this debt to the final bagholder ,the US taxpayers ,no doubt because its a bail out of the bad guys and public opinion doesn't really like bail-outs of bad guys . But here it is . The gamblers ,the greedy liar loan speculators and their lender partners in crime ,get the last laugh .How can one agency of the government like the Feds have so much power over the lives of us all .The Feds office now has more power than the President , the Senate and Congress , the Supreme Court ,to make decisions that will affect the public more than all those powers combined .

Money policy and bail-out policy is really taxation without representation .

I really think we need to take a second look at how powerful the Fed Chairman has become and how many powers we have given that Fed office .Now the Fed Chairmans choices are determining the destiny of America and that in my mind exceeds what any Fed Chairmans powers should be .No choice by the American people on these bail-outs . What's next folks ,what next ?

Anonymous said...

I think I read in WSJ that the only way JPM would do the deal is if gov't guaranteed $30 billion of BS losses.

That may be wrong, but I don' think so.

Add that $30 bln to the tab...

Anonymous said...

Already happened. The Fed has backstopped JPM to the tune of 30B.

Mark said...

If we are going to be bailing out the bankers and other financial geniuses who got us into this mess I want them to return every single penny they were paid while screwing the other 99.999% of the population. EVERY PENNY! Once they returned the money We can fix the financial mess. The fix will have to include a total ban on CDOs, SIVs, hedge funds, day traders and all the other money from thin air scams invented over the past two decades. The stock market needs to return as a place to invest in well run companies and not allowed to be manipulated for short term gains. It's time we return to a society that rewards production and work vs one that favors financial speculators.